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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Falling Knives
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Author: tecmo ⎊☼  😊 😞
Number: of 1251 
Subject: MSTR (Strategy Inc )
Date: 12/02/25 12:52 PM
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No. of Recommendations: 5
This is an interesting one to watch from the sidelines, not sure I would want to participate in any speculation on the potential future.

Background : MSTR is a 'leveraged bitcoin holding company' - they issue preferred shares and then buy bitcoin with the proceeds. The basic premise is that they can find new buyers (suckers) to sell new shares to fund the preferred payouts due every quarter. If bitcoin is trading higher this sort of works.

Well bitcoin is down 30% since October, raising questions about what MSTR will do to raise money for the December payout. They might need to sell bitcoin to raise the required capital. Yes, its a ponzi scheme.

MSTR stock is down 60% from July (from $450 to $180 / share), I sometimes wish I had the courage to short this :)

tecmo
...

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